Unraveling the Oracle's Bet: How Much of BYD Does Berkshire Hathaway Own?
Have you ever wondered about the legendary investments of Warren Buffett and his company, Berkshire Hathaway? One of their most talked-about and highly successful ventures outside of the US has been in the Chinese electric vehicle (EV) and battery giant, BYD. The story of this investment is a fascinating one, marked by incredible gains and a recent trend of selling shares. So, let's dive deep into this topic and uncover the details of Berkshire's ownership in BYD.
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| How Much Of Byd Does Berkshire Hathaway Own |
Step 1: Get Ready to Explore a Legendary Investment!
Before we get into the nitty-gritty of the numbers, let's set the stage. Are you ready to take a journey through a world of investment strategy, multi-billion-dollar returns, and the intricate dance of global markets? This isn't just a simple stock holding; it's a testament to the foresight of Charlie Munger, the late vice chairman of Berkshire Hathaway, who was the driving force behind the initial investment. So, let's grab a cup of coffee and start our exploration!
Step 2: Understanding the Initial Investment and Its Meteoric Rise
A. The Visionary Start
The story begins in 2008, a time when the world was on the brink of a major financial crisis. While many were pulling back, Berkshire Hathaway was making a bold move. They invested a modest sum of $230 million to acquire approximately 225 million shares of BYD, which at the time amounted to a roughly 10% stake in the company. This was not a typical Buffett investment, as he usually favors US-based companies in industries he knows well, like insurance and consumer goods. This investment was a strong reflection of Charlie Munger's belief in BYD's founder, Wang Chuanfu. Munger famously said he had "never helped do anything at Berkshire that was as good as BYD."
B. The Incredible Returns
Over the years, this initial investment has delivered truly staggering returns. As BYD expanded its business from batteries to electric vehicles, its stock price soared. The value of Berkshire's stake increased more than 20-fold, and at its peak, it was worth several billion dollars. This was a classic example of a "Buffett-style" investment where a patient, long-term approach yielded extraordinary results.
QuickTip: Keep going — the next point may connect.
Step 3: Tracking the Recent Sales and Current Ownership
Now, here's where things get interesting and a bit more complex. Since 2022, Berkshire Hathaway has been consistently selling off portions of its BYD stake.
A. The Unwinding Begins
Berkshire started trimming its position in August 2022, shortly after BYD's share price hit a record high. This move, while seemingly contradictory to Buffett's "favorite holding period is forever" philosophy, is a classic example of him taking profits on an investment that has had a monumental run. The sales have been gradual and methodical.
B. Falling Below Key Disclosure Thresholds
One of the most significant moments in this process was when Berkshire's stake dropped below the 5% threshold of BYD's Hong Kong-listed shares in mid-2024. This is a crucial point because, in Hong Kong, shareholders are required to disclose their sales only when their stake falls below a whole percentage number. Once the stake is under 5%, Berkshire is no longer required to disclose its sales publicly. This means that the exact number of shares Berkshire holds at any given moment becomes less transparent to the public.
C. The Current Situation (as of mid-2025)
Based on recent filings and news reports, as of mid-2025, Berkshire Hathaway's ownership in BYD is now below 5%. While the precise number of shares is not publicly disclosed after dropping below this threshold, some reports have indicated a stake as low as 4.94% in mid-2024. It's important to note that even a small percentage of a company as large as BYD still represents a substantial amount of money, likely in the range of billions of dollars.
In summary, as of today, Berkshire Hathaway's ownership of BYD is a small, but still incredibly valuable, single-digit percentage. They have sold a significant portion of their stake since 2022.
QuickTip: Skim first, then reread for depth.
Step 4: The Logic Behind the Sales
Why would Berkshire Hathaway sell a stock that has been such a massive winner? There are a few key reasons that analysts and market observers have cited:
Profit Taking: This is the most straightforward reason. The return on investment has been phenomenal. Selling now allows Berkshire to realize those gains and redeploy the capital elsewhere.
Geopolitical Concerns: This is a major factor. The rising tensions and trade conflicts between the US and China have made investments in Chinese companies more risky for US-based firms. Berkshire Hathaway has made it clear that they are increasingly focusing their primary investments in the US.
Valuation: While BYD is a fantastic company, its stock price has had a tremendous run-up. It's possible that Buffett and his team believe the valuation has become a bit stretched and that a better return can be found in other investments.
A "Munger-pushed" exception: The initial BYD investment was largely driven by Charlie Munger's conviction. With Munger's passing, it's possible that the company is reverting to its more traditional investment focus on US companies.
Step 5: The Impact and Legacy of the BYD Investment
The Berkshire Hathaway-BYD partnership is a classic example of a successful long-term investment. It demonstrates the power of:
Patience and Conviction: Holding onto a company for over a decade and letting the growth compound is a core Buffett principle.
Trust in Management: Munger's trust in Wang Chuanfu was the foundation of the deal.
Thinking Outside the Box: Investing in a Chinese company when others were skeptical.
The BYD investment will forever be remembered as one of Berkshire Hathaway's most successful and unconventional bets.
Related FAQ
How to find out Berkshire Hathaway's current stake in BYD?
Due to regulatory filings, it is difficult to find the exact, real-time number of shares after Berkshire's stake fell below 5%. However, you can track the latest publicly available information from Hong Kong Stock Exchange filings and financial news sources that report on these disclosures.
How to buy BYD stock?
QuickTip: Ask yourself what the author is trying to say.
You can buy BYD stock through a brokerage account. BYD trades on the Hong Kong Stock Exchange (1211:HK) and as an American Depository Receipt (ADR) on the US over-the-counter market (BYDDY). You will need a brokerage account that allows trading of international stocks or ADRs.
How to know when Berkshire Hathaway sells more BYD shares?
As their stake is now below 5%, they are not obligated to disclose sales. However, financial news outlets and analysts may still be able to track and report on changes in ownership through other data sources or market intelligence.
How to understand the difference between BYD's Hong Kong and US-listed shares?
The Hong Kong-listed shares (1211:HK) are the primary stock. The US-listed ADR (BYDDY) represents a certain number of the Hong Kong shares and allows US investors to trade the stock more easily. The price of the ADR is closely linked to the price of the Hong Kong stock.
How to analyze BYD's financial performance?
You can analyze BYD's financial performance by looking at its quarterly and annual reports, which are available on its investor relations website. Key metrics to consider include revenue, net income, profit margins, and sales of vehicles and batteries.
How to compare BYD to other EV companies like Tesla?
You can compare BYD and Tesla by looking at their sales volumes, revenue, profitability, product lineups, geographical presence, and technological advancements (like battery technology). While Tesla is a leader in global EV sales, BYD has a massive presence in the Chinese market and is a leader in battery technology and vertical integration.
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How to interpret Warren Buffett's investment philosophy?
Warren Buffett's philosophy is often described as "value investing." He looks for companies with strong fundamentals, a durable competitive advantage (a "moat"), good management, and a reasonable valuation. He aims to buy and hold these investments for the long term.
How to find out the original price Berkshire Hathaway paid for BYD shares?
Berkshire Hathaway paid approximately $230 million for 225 million shares, which translates to a price of around $1 per share at the time of the initial investment.
How to see the historical stock price of BYD?
You can view the historical stock price of BYD (1211:HK or BYDDY) on financial data websites like Yahoo Finance, Bloomberg, or Macrotrends. This will show you the incredible growth the stock has experienced over the past 15+ years.
How to learn more about the partnership between Berkshire Hathaway and BYD?
You can learn more about this partnership by reading Warren Buffett's annual letters to shareholders from the years following the investment, as well as articles and interviews with Charlie Munger where he discussed his conviction in the company.
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